In an oligopolistic industry, the price firms charge and the quantity they produce would be the same as if the industry were a monopoly if
A. the market is contestable.
B. the oligopolists collude.
C. one of the oligopolists acts as a dominant firm price leader.
D. the oligopolists behave as Cournot assumed.
Answer: B
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Suppose that a small business takes in monthly revenue of $100,000 . Labor, rental, energy, and other purchased input costs are $70,000 . The owner/entrepreneur could earn $5,000 per month in another job, and the owner/entrepreneur could get a return of $5,000 each month if she sold her business and invested the net proceeds in a financial asset, such as a treasury bond. Which of the following
correctly describes her monthly economic profit? a. $100,000. b. $90,000. c. $70,000. d. $30,000. e. $20,000.
When economists say scarcity, they mean:
a. there are only a limited number of consumers who would be interested in purchasing goods. b. the human desire for goods exceeds the available supply of time, goods and resources. c. most people in poorer countries do not have enough goods. d. goods are so expensive that only the rich can afford it.
When competitive forces in an industry are weak,
a. the absence of competition generally leads to overproduction. b. prices may exceed the amount consumers are willing to pay. c. the operational efficiency of private firms will be enhanced. d. higher prices and less than optimal production may result.
Suppose the tax rate is 25% and the taxable bond yield is 8%. What is the equivalent tax-exempt bond yield?
A. 2% B. 6.9% C. 2.3% D. 6%